h: Calculate time value of money problems when compounding periods are other than annual.
Example:PV = $100, N = 1 year, I = 12%. Find the FV for various compounding periods.
Annual:N = 1I = 12%PV = $100
compute FV = $112.00
Semi-annual:N = 2I = 6%PV = $100
compute FV = $112.36
Quarterly:N= 4I = 3%PV = $100
compute FV = $112.55
Monthly:N = 12I = 1%PV = $100
compute FV = $112.68
Daily:N = 365I = .03287PV = $100
compute FV = $112.747
Continuous:FV = (PV)(e(i rate)(n))=100(e)(.12)(1)
App6A compute FV = $112.75